Deepfakes and AI-enabled fraud: understanding the threat and shielding your customers
Let’s talk about the #1 threat that industry insiders are clamoring about right now in the world of fraud: deepfakes. Our goal? To equip you with expert insights and practical tips to protect your organization — and your customers — from deepfake and AI-driven fraud schemes.
In recent years, deepfakes have gone from playfully showcasing AI’s power on social media to posing serious risks — especially in financial and identity fraud. As most already know, the term deepfakes refers to a realistic-looking audio, video, or image that has been manipulated using artificial intelligence to make it appear real.
The term "deepfake" is a combination of "deep learning" and "fake." Deepfakes can be used to replace faces, modify facial expressions, create synthetic faces, and even synthesize voice.
A deep dive into the world of deepfakes provided valuable insights from a recent webinar featuring Becky Kiichle-Gross from Mitek and Joseph Vaughn from U.S. Bank, moderated by Neil Perry from BizClik. The webinar, Shielding customers from deepfakes & AI fraud, breaks down the complexities of deepfakes and AI fraud and shares how businesses can build a strong defense against these hidden threats.
Deciphering deepfakes: how they work
As mentioned above, creating deepfake content uses AI-powered tools to swap faces and make fake images look real. Adding to this complexity, fraudsters now use Generative Adversarial Networks (GANs) to create hyper-realistic fake images.
One recent case highlights the risks: a finance worker was tricked into transferring $25 million to fraudsters impersonating a CFO during a deepfake-enabled video call. This shows how sophisticated and damaging these AI frauds can be.
Today, deepfakes are the go-to tool for many scams:
account opening fraud
account takeovers
phishing, impersonation
and even synthetic identity theft.
This next-level wave of fraud is a significant challenge for FIs.
Customer data isn’t just crucial for onboarding and verification — it’s now a top target for attackers. This shift brings serious risks to compliance and security, making it more essential than ever to protect sensitive information.
The power of knowledge: consumer education and vigilance
Teaching consumers about these risks — and how tools like biometrics can help — is a key part of the solution. But businesses can’t stop there. Staying vigilant and using advanced detection methods is essential.
In the webinar, examples of simple Photoshop edits and more complex AI-generated images are showcased — images that can be nearly impossible to spot.
Tackling these threats requires a balanced approach, combining human insight with powerful tech tools. As we move from physical to digital identities, new vulnerabilities arise — ones that fraudsters are quick to leverage.
The legal landscape and ethical considerations
As deepfakes become more widespread, legal responses to financial crimes are evolving. Ethical concerns around privacy and data security are also taking center stage.
This article highlights the role of machine learning and AI in strengthening anti-fraud measures and emphasizes the need for ongoing verification and regular data updates to stay ahead of clever fraudsters.
Protecting your business: a pragmatic blueprint
A multi-layered approach to guard against deepfakes and other types of fraud will give you the best odds of protection. This strategy includes educating employees and customers on these threats, using strong authentication methods, and tracking financial transactions in real time.
Further insights into deepfakes:
Hear from industry experts and thought leaders from around the world
A diverse community of innovators shares insights on identity and fraud, the evolution of these fields, and what it all means for businesses and customers: